THEBUSINESSBYTES BUREAU
NEW DELHI, JUNE 26, 2026
Ahead of Prime Minister Narendra Modi's State Visit to
Seychelles, India and the island nation are poised to elevate their economic
partnership, with bilateral ties gathering momentum across trade, investment,
connectivity, renewable energy and the blue economy.
The relationship has steadily evolved beyond traditional
trade, reflecting a broader strategic collaboration focused on sustainable
development and resilience in the Indian Ocean region. Despite the absence of a
direct shipping line, bilateral commerce has maintained a healthy growth
trajectory, supported by expanding investments and improved air connectivity.
India remains one of Seychelles' key trading partners,
exporting a diverse basket of essential goods, including rice, processed food,
cement, textiles, cotton, vehicles, pharmaceuticals, and medical and surgical
equipment. Bilateral trade rose nearly 15 per cent to USD 84.88 million during
2023-24, with Indian exports accounting for USD 76.19 million and imports from
Seychelles standing at USD 8.69 million.
Trade has remained resilient in the current financial year as
well. Between April 2024 and February 2025, bilateral trade reached USD 72.92
million, comprising Indian exports worth USD 68.64 million and imports valued
at USD 4.28 million.
Indian businesses have also strengthened their footprint in
Seychelles. Bank of Baroda has maintained a successful presence in Victoria
since 1978, while Bharti Airtel has invested over USD 25 million since entering
the Seychelles market in 1998, providing telecom and internet services. India's
automotive sector has also expanded its presence, with Tata Motors supplying a
significant share of the country's public bus fleet and Ashok Leyland recently
entering the market.
Connectivity has emerged as another key driver of economic engagement.
Air Seychelles continues to operate direct weekly flights between Mahé and
Mumbai under a bilateral agreement signed in 2014. The launch of four weekly
direct flights by IndiGo between Mumbai and Mahé in March 2025 has further
boosted tourism, business travel and people-to-people exchanges.
Economic cooperation has also deepened through institutional
mechanisms, including the Tax Information Exchange Agreement signed during the
Seychelles Presidential visit to India in 2015, enhancing transparency and
financial collaboration.
The blue economy and renewable energy have become central
pillars of the partnership. A Blue Economy Protocol signed during Prime
Minister Modi's 2015 visit laid the foundation for cooperation in sustainable
marine resource management and ocean-based economic development.
Seychelles, a founding member of the International Solar
Alliance after ratifying its framework agreement in 2017, has expanded
renewable energy collaboration with India. In October 2024, the island nation
commissioned a five-metric-tonne solar-powered cold storage facility on Praslin
Island under an ISA-backed initiative. Additional projects, including solar
rooftop systems, solar pumps and solar chillers under the Quad Climate
Initiative, are expected to further strengthen sustainable infrastructure.
With Prime Minister Modi's upcoming visit expected to inject
fresh momentum into bilateral engagement, India and Seychelles are likely to
explore new avenues for expanding trade, investment and clean energy cooperation,
reinforcing their shared vision of inclusive growth and strategic partnership
across the Indian Ocean.
